Sec. 4-1403 Fixed and Variable Rate Debt

Sec. 4-1403. Fixed and Variable Rate Debt

While this policy will permit both types of debt, the institution’s preferred methodology is fixed rate debt to provide long term budget stability for the institution. Variable rate debt will only be considered when locking in to long term interest rates would not be in the best interest of the university.

Interest rate swaps may be utilized when they provide increased financial flexibility or provide interest rate savings.